Amazon achieved 121 billion dollars (115.6 billion francs) in turnover in the second quarter, up 7%, despite an unfavorable comparison with last year and a difficult economic context. Its stock jumped more than 10% in electronic trading after the market closed. The e-commerce group, however, posted a net loss of $2 billion due to a $3.9 billion investment loss in electric car maker Rivian.
“Despite inflation driving up the price of fuel, energy and transportation, we are making progress on more controllable costs […] in particular by improving the productivity of our network of sorting and logistics centers, ”said Andy Jassy, the boss of Amazon, quoted in a press release.
Read also: Apple’s earnings slip, but iPhone sales are better than expected
Amazon did not disappoint on the cloud side either: its AWS service, the world leader in this market, earned 19.55 billion in revenue, a result above analysts’ expectations.
Lower forecasts for the rest of the year
But for the current quarter, Amazon expects operating profit – a key indicator of profitability – of between 0 and 3.5 billion dollars, instead of 4.9 billion last year at the same period. The Seattle-based company is suffering “reduced consumer spending and rising costs,” says Andrew Lipsman, analyst at insider Intelligence.
In a few months, the economic environment of the technology giants has deteriorated radically. The health crisis and confinements have led to an explosion of online habits, from consumption to work and entertainment. The digital transition continues – most platforms are gaining new users – but at a slower pace, comparable to that before the Covid-19 pandemic.
Read also: Four questions to understand the fall in tech stocks
Added to this phenomenon are numerous macroeconomic constraints, starting with inflation and difficulties in the supply chain.
The second largest employer in the United States behind Walmart had 1.6 million employees at the end of 2021, more than double the number in 2019. But since the spring, Amazon has “moved from being understaffed to being of overstaffing,” noted Brian Olsavsky, the group’s chief financial officer.
After struggling to recruit, the platform therefore decided to slow down the pace of hiring, like Google, Microsoft and Snap.